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Strategies & Market Trends : Option Spreads, Credit my Debit -- Ignore unavailable to you. Want to Upgrade?

To: Jon Tara who wrote (762)	7/2/1999 11:15:00 AM
From: dealmakr	Respond to of 2317

Jon, The margin requirement for the spread that I posted would be 9 points. Difference between strikes-premium recieved. Good Trading Dave

To: Jon Tara who wrote (762)	7/2/1999 1:16:00 PM
From: KFE	Respond to of 2317

Jon, Basically, it sounds like on credit spreads I would have to put up the entire spread as margin. (Actually, the spread minus the credit). The regulatory margin requirement and each firm's requirement may vary. The regulatory requirement is the difference between the strikes minus the credit received. Most firms require equity in the account equal to the difference between the strikes. If you have equity in the account then you don't have to put up anything. This is completely different than using equity to buy stock on margin. No debit is created and some firms will pay interest on the credit received. You will also maintain buying power. Hope this helps. Ken